Back to the original question. One big benefit of being a first time buyer is that you don't have an existing house that you must sell first. You purchase is not dependent on you having to sell your current house. This gives you more leverage in negotiating your best deal.
There are certainly people who are good at picking real estate, just like there are people who are good at picking equities or playing a sport. It doesn't mean that everybody else is good at it.
Instead of passing your home on to your kids, chances are that you can invest the money wisely, and pass a brokerage account on to them instead, and they'll be better off.
Florida and Cali went bust because people wanted to purchase homes that theyc ouldnt afford, and they were approved for them. I don't know about you, but if I can't afford a Maserati i wont be looking at one no matter how good my % would be on that loan. And that is exactly what happened, people bought Ferraris when they could only afford a Benz.
In New York we have very minimal inventory, and after all of our developments that are going up right now SELL OUT, what are you going to do then? People will start paying premium for a property, because there wont be another option.
AJ we can agree to disagree, I can own a home and pass it on to my children, could you do that with a rental? And if you talk about stocks, unless you are a real expert, how many people make Millions doing it? I have a friend who is a day trader, but makes 90% of his money playing professional poker.
When I think about purchasing a property I am not so concerned with, say Arizona and 50 thousand properties they have on the market, I look and study New York and base my decisions upon that. Very few people lose out on Real Estate investments, and usually when they do, it's because they didn't know what they were doing.
And I still agree that when you rent, it's throwing money away, you aren't building any equity by renting, you aren't living in your own space, building your future. If you move every 2 years, DON'T BUY, no point, if you are planning on starting a family, I would always buy over rent.
The < 1% stat I quote is based on data since 1890, as far back as I've been able to find, and not avai.able on a more regional level. To say that since NY real estate has gone up in the past, its a good investment for the future is short-sighted. You could say that about stocks or bond or any other assets based on what they've done in some period of time - it doesn't meant they're going to behave like that in the future.
When using it, keep in mind that historically, in the US homes have appreciated at less than 1%.
Ray you can finally stop throwing money away on rent, you will OWN something, and you can write off your home during the tax season, and most importantly you can be proud to come home to something that is yours. And build up some equity.
I would be more than happy to discuss some 1st time homebuyers programs with you. I have a great lender that I work with that that also could give you all of the ins and outs of buying your 1st home. Many cities also have 1st time home buyer programs. Please give me a call and I will be happy to assist you. This is a great time to buy a home there alot of inventory on the market right now.